Best use of the LSP for stabilizing another protocol

Qualification requirement:

Projects must have a description and a GitHub repository with a descriptive README.
How your module safely leverages LSP liquidity.
Why it's beneficial to both protocols and LSP depositors.
There has to be at least one practical example of a known protocol making a sound use of your developed module that plugs into the LSP.
Technically and economically sound.
Code must be open source and modular enough to plug into future protocols.
Berachain smart contract deployment.

Examples:

Lending liquidations (Aave, Dolomite)
Perpetuals liquidations (GMX, Hyperliquid…)

Description

Liquid Stability Pool offsets the debt of liquidations in our CDP module, we believe we can bring higher capital efficiency to the $NECT sitting there by having other protocols (Perpetuals, Lending…) making use of that available liquidity, with the condition that it ends up being profitable to LSP holders. Develop a module that can plug into the `LiquidStabilityPool::offset()` function, ensuring that any other protocol can make use of its liquidity, without introducing any liquidity problem.

Events

ETHGlobal Prague

Prize value

2,500